Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Council adopts franchise-fee ordinances for CenterPoint and Xcel after public hearing; residential rate unchanged
Summary
Following staff presentations and one public comment, the Bloomington City Council adopted ordinances modifying franchise fees for CenterPoint (gas) and Xcel (electric), adding a proposed retaining‑wall funding category while keeping the residential fee unchanged; both ordinances passed 7-0.
The Bloomington City Council on May 18 adopted ordinances modifying franchise fees for CenterPoint Energy and Xcel Energy after a staff presentation and a single public comment.
City staff presented a history of the city’s franchise-fee program (in place since 2015, collections since April 2016) and proposed changes for 2027. Staff proposed adding retaining-wall replacement as an eligible use of franchise-fee revenue, noting the city has just under 530 retaining walls in the right-of-way and that larger wall projects had been funded from the general fund or state aid in the past. Staff also described prior and planned uses of franchise-fee revenue for overlays, seal coats, trails, sidewalks and ADA ramp work.
On proposed rates, presenters said the residential franchise fee would remain unchanged for 2027. The presentation listed proposed increases for some commercial classes (for example, a commercial non-demand increase of about $1.10 per month and other larger commercial categories increasing by larger monthly amounts).
Public comment: Bloomington resident Matthew Howlett asked who ultimately pays the fee and said residents end up bearing costs; he argued that corporations with record profits should absorb more of the burden. "I feel as though it should be the corporations that are breaking in record profits," Howlett said.
Council discussion and votes: Staff and utility representatives clarified that the ordinance is a contract between the city and the utilities and that utilities typically pass the fee through to ratepayers; Xcel’s Michelle Swanson explained demand charges apply to electric commercial customers with peak load, and CenterPoint’s Cat Knudson said gas does not have demand. Council Member Robertson moved to adopt the ordinance modifying the gas franchise fee for CenterPoint; the motion passed 7‑0. The council then adopted the electric franchise ordinance for Northern States Power (Xcel) and approved summary publication, both by 7‑0 votes.
What happens next: The ordinances will be published in summary form as directed by council; staff will proceed with implementation and continued public communications about uses of franchise-fee revenue.
